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Melbourne, May 24, 2017: Cushman & Wakefield has today announced the $23 million sale of an industrial property located on Whiteside Road, Clayton South to an offshore private investor, as the strong investment volumes seen at the beginning of the year are set to continue into the second quarter.

The property, located across two titles at 13-27 and 29-43 Whiteside Road in Clayton South within Melbourne’s South East industrial area is a 39,720 sqm site comprising warehouse and office space. The property is currently leased by the ASX listed industrial company, CSR Building Products, with a WALE of 7.75 years and a net annual income of $1,574,157.

Cushman & Wakefield’s Head of Industrial, Melbourne, Andrew O’Connell and Senior Executive, Robert Colaneri, managed the sale on behalf of the vendor, DMS Glass Properties. The expression of interest campaign generated a substantial level of interest, with over 80 inquiries from both institutional and private investors.

According to Cushman & Wakefield research, investment into Melbourne’s industrial sector totaled $200 million in the first quarter of 2017, and this is set to increase in the current quarter with investment on track to match the volumes seen in Q2 2016 of $309 million. Deals in the second quarter included the sale of 40 Howley’s Road, Notting Hill for $10.55 million, an asset within the Altona Logistics Park on Toll Drive for $7 million, 68 Kirkham Road, Keysborough, for $15 million. In addition, two national portfolio transactions in the sector have further contributed to industrial investment volumes this quarter.

Commenting on the sale, Robert Colaneri said: “There is lack of quality industrial investments with strong lease covenants in Melbourne’s South East, and there is an investment appetite for industrial sites up to $50 million. We saw this during the sale process with institutions and syndicates driving up enquiry, joined by very healthy levels of private and offshore investor interest.”

Andrew O’Connell said: “Melbourne’s industrial market continues to attract substantial levels of investment, with quarterly volumes on track to reach the $309 million level recorded at the end of June last year. We expect to see the fundamentals of the industrial market and constrained stock levels underpin increased competition for assets for the remainder of this year.

“Yields also remain tightest in the South East, reflecting the level of competition for quality stock,” Mr O’Connell concluded.

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